On December 31,IOU Corporation issued $100,000 of 10-year,8% bonds at 98.The bonds pay interest annually on December 31.How much cash will bondholders receive on the first interest payment date?

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The bondholders will receive $8,000 on the first interest payment date, which is the annual interest payment calculated as 8% of the $100,000 face value of the bonds.

On December 31,IOU Corporation Issued $100,000 of 10-Year,8% Bonds at 98.The